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New Delhi — General Motors (GM) sold its closed Indian plant to Great Wall Motor in China on Friday after New Delhi showed a tough stance on investment from Beijing without regulatory approval. He said he had canceled it.
In January 2020, GM signed an agreement to sell the plant to the Great Wall of China. Chinese SUV makers are expected to pay up to $ 300 million as part of an extensive plan to invest $ 1 billion to establish a presence in India. Growing car market.
The contract that was extended twice expired on June 30th.
"We did not get the required approval within the duration of the transaction," George Sbigos, executive director of communications at GM International, told Reuters.
"Our strategy in India has not changed and we will consider more options for selling the site," he said, "we want to achieve a price that reflects the value of our assets." I'm thinking. "
The Great Wall of China and the Government of India did not immediately respond to emails asking for comment.
GM's deal with the Great Wall of China was agreed in April 2020 a few months before India stepped up its stance on investment from neighboring countries, including China, with billions of dollars in capital inflows. Became the first major victim of this move to thwart. In fields such as automobiles and technology.
This was part of India's broader crackdown on companies with ties to China as diplomatic relations deteriorated. Apart from this, New Delhi has also banned more than 300 Chinese mobile apps, including TikTok, due to security concerns.
This move draws a line under the efforts of GM and the Great Wall of China for more than two years, while US companies continue to spend money on maintaining some machines and tools, while buyers. I have been forced to resume my search. plant.
Asked if the plant could be used to make electric vehicles, Subigos said it was suitable for many industrial applications, including non-automotive companies, and GM considered all options. To do.
GM, which stopped selling cars in India at the end of 2017, has already sold other factories to SAIC Motor, and Chinese car makers are manufacturing cars with British brand MG motors. ..
This brings the Great Wall back to the drawing board on plans to enter India, which was considered an important part of the global strategy to enter new markets such as Latin America, Thailand and Brazil. ..
Last year, the Great Wall reassigned some of its $ 1 billion investment in India to Brazil and some staff after a delay in obtaining government approval. Did. (Report edited by Aditi Shah by Mark Potter)
